Nearly half of household budgets go to basics

Housing and food accounted for 46.9% of average expenditures in 2025, according to the U.S. Bureau of Labor Statistics Consumer Expenditures Report.

Housing costs jumped 5.8% in one year

The average household spent $27,790 on housing in 2025, up from $26,266 in 2024. Shelter costs rose 8%, rented dwellings climbed 10.8%.

Food spending increased 4.6% year-on-year

The average consumer spent $10,633 on food in 2025, up from $10,169 the previous year. Meat, poultry, fish and eggs spending jumped 11.7%.

Costs rising faster than overall inflation

Consumer inflation increased 2.6% in 2025, while housing and food expenditures grew faster. This disconnect between finances and affordability has carried into 2026.

Consumer sentiment hits second-lowest on record

The University of Michigan's October consumer sentiment index sat at 48.0, down 10.4% from October 2025's 53.6. It was the second-lowest in the survey's history.

“Purchasing power continues to dominate consumer views of the economy.”

Nearly half of Americans lack resources for essentials

According to The Urban Institute's October tracker, 49% of people in American families lacked resources to cover true costs of essential expenses and live securely.

Lowest earners spend more than they make

Households in the bottom income quintile made $18,125 in pre-tax income but had $37,935 in annual expenditures. Average pre-tax income rose 6.4% to $110,847 in 2025.

Healthcare and utilities add to the squeeze

Americans spent 4.4% more on healthcare in 2025, reaching $6,470 annually. Health insurance premiums climbed 6.3% to $4,310. Utility bills rose 4.1% to $411 monthly.